How Buyers Forecast: Buyer – Seller Relationship as a Boundary Condition of the Impact Bias

Monga, Ashwani, Allan Chen, Michael Tsiros, and Mona Srivastava (2012), “How Buyers Forecast: Buyer–Seller Relationship,” Marketing Letters, 23 (1), 31-45.

Mays Business School Research Paper 2763119

Posted: 13 Apr 2016 Last revised: 29 Mar 2019

See all articles by Ashwani Monga

Ashwani Monga

University of South Carolina

Haipeng (Allan) Chen

University of Kentucky - Gatton College of Business and Economics

Michael Tsiros

University of Miami - Department of Marketing

Mona Srivastava

Harvard University - Business School (HBS)

Date Written: April 11, 2016

Abstract

People frequently overestimate the impact of an event when they imagine it, relative to when they actually experience it. This phenomenon, known as the impact bias, has been well established as an intrapersonal phenomenon. We extend it to the inherently interpersonal marketing setting involving buyer – seller dyads in which the two entities are bound by a relationship, and propose a moderating effect based on the strength of the buyer – seller relationship. An online panel study and three laboratory experiments provide converging evidence such that the impact bias emerges when the buyer – seller relationship is strong, but disappears when the relationship is weak.

Suggested Citation

Monga, Ashwani and Chen, Haipeng (Allan) and Tsiros, Michael and Srivastava, Mona, How Buyers Forecast: Buyer – Seller Relationship as a Boundary Condition of the Impact Bias (April 11, 2016). Monga, Ashwani, Allan Chen, Michael Tsiros, and Mona Srivastava (2012), “How Buyers Forecast: Buyer–Seller Relationship,” Marketing Letters, 23 (1), 31-45.; Mays Business School Research Paper 2763119. Available at SSRN: https://ssrn.com/abstract=2763119

Ashwani Monga

University of South Carolina ( email )

United States
803-777-5918 (Phone)

Haipeng (Allan) Chen

University of Kentucky - Gatton College of Business and Economics ( email )

550 South Limestone
Lexington, KY 40506
United States

Michael Tsiros (Contact Author)

University of Miami - Department of Marketing ( email )

United States

Mona Srivastava

Harvard University - Business School (HBS) ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

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